Tax | Business Management Company

Achieving your succession and estate planning goals via recapitalization

January 25, 2016 / by Brett Hess / Small Business, Tax

Like many business owners, you probably have much of your wealth tied up in your company. And this fact may be creating a conflict between the desire to transfer ownership to the next generation and the desire to stay in control. One potential solution: Recapitalize your business into voting and nonvoting shares. From an estate […]

The 529 savings plan: A tax-smart way to fund college expenses

December 2, 2015 / by Brett Hess / Tax

If you’re saving for college, consider a Section 529 plan. Although contributions aren’t deductible for federal purposes, plan assets can grow tax-deferred. (Some states do offer tax incentives for contributing.) Distributions used to pay qualified expenses (such as tuition, mandatory fees, books, equipment, supplies and, generally, room and board) are income-tax-free for federal purposes and […]

2 tax consequences to consider if you’re refinancing a home

November 4, 2015 / by Brett Hess / Tax

Now may be a great time to refinance, because mortgage rates are still low but expected to increase. Before deciding to refinance, however, here are a couple of tax consequences to consider: 1. Cash-out refinancing. If you borrow more than you need to cover your outstanding mortgage balance, the tax treatment of the cash-out […]

Should you “bunch” medical expenses into 2015?

October 7, 2015 / by Brett Hess / Tax

Should you “bunch” medical expenses into 2015? Medical expenses that aren’t reimbursable by insurance or paid through a tax-advantaged account (such as a Health Savings Account or Flexible Spending Account) may be deductible — but generally only to the extent that they exceed 10% of your adjusted gross income. Taxpayers age 65 and older can […]

Selling rather than trading in business vehicles can save tax

September 30, 2015 / by Brett Hess / Small Business, Tax

Selling rather than trading in business vehicles can save tax Although a vehicle’s value typically drops fairly rapidly, the tax rules limit the amount of annual depreciation that can be claimed on most cars and light trucks. Thus, when it’s time to replace a vehicle used in business, it’s not unusual for its tax basis […]

Why you should contribute more to your 401(k) in 2015

September 23, 2015 / by Brett Hess / Tax

Why you should contribute more to your 401(k) in 2015 Contributing to a traditional employer-sponsored defined contribution plan, such as a 401(k), 403(b) or 457 plan, offers many benefits: Contributions are pretax, reducing your modified adjusted gross income (MAGI), which can also help you reduce or avoid exposure to the 3.8% net investment income tax. […]

When will Congress pass “extenders” for 2015?

September 9, 2015 / by Brett Hess / Tax

When will Congress pass “extenders” legislation to revive expired tax breaks for 2015? With Congress returning from its August recess, this is the question on tax-savvy Americans’ minds. Many valuable tax breaks aren’t permanent, so Congress has to pass legislation extending them to keep them in effect. Unfortunately, Congress often waits until the last minute […]

Donating Collectibles

September 2, 2015 / by Brett Hess / Tax

What you need to know before donating collectibles If you’re a collector, donating from your collection instead of your bank account or investment portfolio can be tax-smart. When you donate appreciated property rather than selling it, you avoid the capital gains tax you would have incurred on a sale. And long-term gains on collectibles are […]

Moving Expense Deduction

August 18, 2015 / by Brett Hess / Tax

Ever wonder what you could or couldn’t deduct on your taxes for moving, and under what circumstances you could deduct moving expenses. The link below spells out most of what you need to know about the moving expense deduction. Most important: you must be moving for work to deduct moving expenses. http://www.irs.gov/uac/Moving-Expense-Deduction

Teens in your family with summer jobs? Set up IRAs for them!

August 12, 2015 / by Brett Hess / Tax

Teenagers’ retirement may seem too far off to warrant saving now, but IRAs can be perfect for teens precisely because they’ll likely have many years to let their accounts grow tax-deferred or tax-free. The 2015 contribution limit is the lesser of $5,500 or 100% of earned income. A teen’s traditional IRA contributions typically are deductible, […]

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